Who must prepare the feasibility study for a Punch King Fitness site?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
For your Site, we provide building specifications for your real property space, we review your design plans, you must retain a licensed architect, and you must obtain a feasibility study prepared by a qualified third party for the Site of your Franchised Business (Section IV of the Franchise Agreement).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 28–35)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the franchisee is responsible for obtaining a feasibility study for their chosen site. This study must be prepared by a qualified third party. Punch King Fitness does not select the site but requires the franchisee to provide all necessary information and documents for approval.
The franchisor's approval process considers factors such as the general location, neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms. Punch King Fitness will provide building specifications and review the franchisee's design plans, but the franchisee must also retain a licensed architect.
This requirement ensures that the franchisee conducts thorough due diligence on the location's potential. By using a qualified third party, Punch King Fitness aims to receive an unbiased assessment of the site's viability. The franchisee bears the cost of the feasibility study, which is a standard practice in franchising, as the franchisee typically has more direct control over the site selection.